Marks and Spencer Plc (M&S) group revenue decreased by 3 percent at
constant currency to 4,967 million pounds (5,689 million dollars) in the
first half of this fiscal year, which the company said was adversely
impacted by Easter timing by an estimated 0.8 percent in Food and 0.2
percent in Clothing & Home and the group’s accelerated UK store closures.
The company said, profit before tax & adjusting items was 223.5 million
pounds (293.4 million dollars), up 2 percent on last year benefiting from
lower first half costs. Basic earnings per share increased by 3.8 percent
to 5.4p, due to the increase in profit year-on-year, while adjusted basic
earnings per share decreased by 0.9 percent to 10.6p.

Commenting on the half year trading update, Steve Rowe, the company’s
Chief Executive said in a statement: “Against the background of profound
structural change in our industry, we are leaving no stone unturned and
reshaping our business, its organisation and culture. We are on track to
restructure our store portfolio with over 100 full-line closures and expect
to see newly remodelled stores open next year. We are fixing the basics of
our online channel and there are very early signs of improvement.“

Highlights of Marks & Spencer’s first half

M&S added that UK Clothing & Home revenue decreased by 2.7 percent as
the company closed 21 full-line stores and three outlets, while
like-for-like revenue decreased 1.1 percent. Gross margin was down 20bps at
58.1 percent, while buying margin was up 30bps. Clothing & Home online
revenue rose 9.1 percent and total M&S.com revenue increased 5.6 percent at
constant currency, which the company said, was adversely impacted by the
planned change to food offer and by the closure of website in China.

International revenue decreased 18.4 percent at constant currency, as a
result of the closure of stores in loss making exit markets and the sale of
its operations in Hong Kong to the franchise partner in December 2017.
Excluding these effects, revenue at constant currency increased 1.6
percent. Growth in franchise revenue was driven by the further expansion of
food business, particularly in France. The decline in revenue in owned
retained markets, reflected difficult trading in the Republic of Ireland
which was largely offset by continued growth in India and other
company-owned retained markets.

M&S has announced an interim dividend of 6.8p, which will be paid on
January 11, 2019 to shareholders on the register of members as at close of
business on November 16, 2018. The company expects Clothing & Home space to
decrease by 4 percent compared to previous estimate of 5 percent at
year-end and capital expenditure to be between 300-350 million pounds
compared to previous estimate of 350-400 million pounds before
disposals.